2011 ifrs updatesv3

8/3/2019 2011 IFRS Updatesv3

1/19

Asia Regional Finance ConferenceAugust 23-25, 2011

IFRS UPDATES

Noreen Macayan

August 23, 2011


2/19

Course Objective

Provide a brief history of IFRS

Provide updates on IFRS

Highlight further amendments and likely future

pronouncements

2010 Schweitzer-Mauduit International, Inc. 2


3/19

HISTORY OF IFRS


Date History

1966 ICAEW, AICPA and CICA formed International Study Group

1967 The Accountants International Group was Founded

1973 IASC was formed

1973-2000 IAS 1 to IAS 41 (numerically)

2001 IASC was replace by IASB The IASB adopted all the IAS and

Standards were published in series called IFRS

2001 to date IAS & IFRS


4/19

IFRS issued by IASB

IASC IASB TO DATE

AccountingStandards

IAS IFRS IAS & IFRS

Interpretations

Committee

SIC IFRIC SIC & IFRIC



5/19

Summaries of IFRS up to 2010


IAS 1 Presentation of Financial StatementsIAS 2 InventoriesIAS 7 Statement of Cash FlowsIAS 8 Accounting Policies, Changes in AccountingEstimates and ErrorsIAS 10 Events After the Reporting PeriodIAS 11 Construction ContractsIAS 12 Income TaxesIAS 14 Segment ReportingIAS 16 Property, Plant and Equipment

IAS 17 LeasesIAS 18 RevenueIAS 19 Employee BenefitsIAS 20 Accounting for Government Grants andDisclosure of Government AssistanceIAS 21 The Effects of Changes in Foreign ExchangeRatesIAS 23 Borrowing Costs

IAS 24 Related Party DisclosuresIAS 26 Accounting and Reporting by Retirement BenefitPlansIAS 27 Consolidated and Separate Financial StatementsIAS 28 Investments in AssociatesIAS 29 Financial Reporting in HyperinflationaryEconomies

IAS 31 Interests In Joint VenturesIAS 32 Financial Instruments: PresentationIAS 33 Earnings Per ShareIAS 34 Interim Financial ReportingIAS 36 Impairment of AssetsIAS 37 Provisions, Contingent Liabilities andContingent AssetsIAS 38 Intangible AssetsIAS 39 Financial Instruments: Recognition and

MeasurementIAS 40 Investment PropertyIAS 41 AgricultureIFRS 1 First-time Adoption of International FinancialReporting StandardsIFRS 2 Share-based PaymentIFRS 3 Business CombinationsIFRS 4 Insurance ContractsIFRS 5 Non-current Assets Held for Sale and

Discontinued OperationsIFRS 6 Exploration for and Evaluation of MineralAssetsIFRS 7 Financial Instruments: DisclosuresIFRS 8 Operating Segments
http://www.iasplus.com/standard/ias01.htmhttp://www.iasplus.com/standard/ias02.htmhttp://www.iasplus.com/standard/ias07.htmhttp://www.iasplus.com/standard/ias08.htmhttp://www.iasplus.com/standard/ias10.htmhttp://www.iasplus.com/standard/ias11.htmhttp://www.iasplus.com/standard/ias12.htmhttp://www.iasplus.com/standard/ias14.htmhttp://www.iasplus.com/standard/ias16.htmhttp://www.iasplus.com/standard/ias17.htmhttp://www.iasplus.com/standard/ias18.htmhttp://www.iasplus.com/standard/ias19.htmhttp://www.iasplus.com/standard/ias20.htmhttp://www.iasplus.com/standard/ias21.htmhttp://www.iasplus.com/standard/ias23.htmhttp://www.iasplus.com/standard/ias24.htmhttp://www.iasplus.com/standard/ias26.htmhttp://www.iasplus.com/standard/ias27.htmhttp://www.iasplus.com/standard/ias28.htmhttp://www.iasplus.com/standard/ias29.htmhttp://www.iasplus.com/standard/ias31.htmhttp://www.iasplus.com/standard/ias32.htmhttp://www.iasplus.com/standard/ias33.htmhttp://www.iasplus.com/standard/ias34.htmhttp://www.iasplus.com/standard/ias36.htmhttp://www.iasplus.com/standard/ias37.htmhttp://www.iasplus.com/standard/ias38.htmhttp://www.iasplus.com/standard/ias39.htmhttp://www.iasplus.com/standard/ias40.htmhttp://www.iasplus.com/standard/ias41.htmhttp://www.iasplus.com/standard/ifrs01.htmhttp://www.iasplus.com/standard/ifrs02.htmhttp://www.iasplus.com/standard/ifrs03.htmhttp://www.iasplus.com/standard/ifrs04.htmhttp://www.iasplus.com/standard/ifrs05.htmhttp://www.iasplus.com/standard/ifrs06.htmhttp://www.iasplus.com/standard/ifrs07.htmhttp://www.iasplus.com/standard/ifrs08.htmhttp://www.iasplus.com/standard/ifrs08.htmhttp://www.iasplus.com/standard/ifrs07.htmhttp://www.iasplus.com/standard/ifrs06.htmhttp://www.iasplus.com/standard/ifrs05.htmhttp://www.iasplus.com/standard/ifrs04.htmhttp://www.iasplus.com/standard/ifrs03.htmhttp://www.iasplus.com/standard/ifrs02.htmhttp://www.iasplus.com/standard/ifrs01.htmhttp://www.iasplus.com/standard/ias41.htmhttp://www.iasplus.com/standard/ias40.htmhttp://www.iasplus.com/standard/ias39.htmhttp://www.iasplus.com/standard/ias38.htmhttp://www.iasplus.com/standard/ias37.htmhttp://www.iasplus.com/standard/ias36.htmhttp://www.iasplus.com/standard/ias34.htmhttp://www.iasplus.com/standard/ias33.htmhttp://www.iasplus.com/standard/ias32.htmhttp://www.iasplus.com/standard/ias31.htmhttp://www.iasplus.com/standard/ias29.htmhttp://www.iasplus.com/standard/ias28.htmhttp://www.iasplus.com/standard/ias27.htmhttp://www.iasplus.com/standard/ias26.htmhttp://www.iasplus.com/standard/ias24.htmhttp://www.iasplus.com/standard/ias23.htmhttp://www.iasplus.com/standard/ias21.htmhttp://www.iasplus.com/standard/ias20.htmhttp://www.iasplus.com/standard/ias19.htmhttp://www.iasplus.com/standard/ias18.htmhttp://www.iasplus.com/standard/ias17.htmhttp://www.iasplus.com/standard/ias16.htmhttp://www.iasplus.com/standard/ias14.htmhttp://www.iasplus.com/standard/ias12.htmhttp://www.iasplus.com/standard/ias11.htmhttp://www.iasplus.com/standard/ias10.htmhttp://www.iasplus.com/standard/ias08.htmhttp://www.iasplus.com/standard/ias07.htmhttp://www.iasplus.com/standard/ias02.htmhttp://www.iasplus.com/standard/ias01.htm


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Superseded IASs

IAS 3 Consolidated Financial Statements IAS 27 and IAS 28

IAS 4 Depreciation Accounting IAS 16, 22, and 38

IAS 5 Information to Be Disclosed in

Financial Statements

IAS 1

IAS 6 Accounting Responses to ChangingPrices

IAS 15, then withdrawn in 2003

IAS 9 Accounting for Research and

Development Activities

IAS 38

IAS 13 Presentation of Current Assets and

Current Liabilities

IAS 1

IAS 22 Business Combinations IFRS 3

IAS 25 Accounting for Investments IAS 39 and IAS 40

IAS 35 Discontinuing Operations IFRS 5

http://www.iasplus.com/standard/ias27.htmhttp://www.iasplus.com/standard/ias28.htmhttp://www.iasplus.com/standard/ias01.htmhttp://www.iasplus.com/standard/ias15.htmhttp://www.iasplus.com/standard/ias38.htmhttp://www.iasplus.com/standard/ias01.htmhttp://www.iasplus.com/standard/ias22.htmhttp://www.iasplus.com/standard/ifrs03.htmhttp://www.iasplus.com/standard/ias39.htmhttp://www.iasplus.com/standard/ias40.htmhttp://www.iasplus.com/standard/ias35.htmhttp://www.iasplus.com/standard/ifrs05.htmhttp://www.iasplus.com/standard/ifrs05.htmhttp://www.iasplus.com/standard/ias35.htmhttp://www.iasplus.com/standard/ias40.htmhttp://www.iasplus.com/standard/ias39.htmhttp://www.iasplus.com/standard/ifrs03.htmhttp://www.iasplus.com/standard/ias22.htmhttp://www.iasplus.com/standard/ias01.htmhttp://www.iasplus.com/standard/ias38.htmhttp://www.iasplus.com/standard/ias15.htmhttp://www.iasplus.com/standard/ias01.htmhttp://www.iasplus.com/standard/ias28.htmhttp://www.iasplus.com/standard/ias27.htm


7/19

Whats new for 2011 and beyond?

IAS 27 Consolidated and Separate Financial Statements Supersededby IFRS 10, IFRS 12 and IAS 27 (rev. 2011) effective 2013

IAS 28 Investments in Associates Superseded by IAS 28 (rev.2011) and IFRS 12 effective 2013

IAS 31 Interests In Joint Ventures Superseded by IFRS 11 and IFRS12 effective 2013

IAS 39 Financial Instruments: Recognition and Measurement

Superseded by IFRS 9 effective 2015

http://www.iasplus.com/standard/ias27.htmhttp://www.iasplus.com/standard/ifrs10.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ias27_2011.htmhttp://www.iasplus.com/standard/ias28.htmhttp://www.iasplus.com/standard/ias28_2011.htmhttp://www.iasplus.com/standard/ias28_2011.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ias31.htmhttp://www.iasplus.com/standard/ifrs11.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ias39.htmhttp://www.iasplus.com/standard/ifrs09.htmhttp://www.iasplus.com/standard/ifrs09.htmhttp://www.iasplus.com/standard/ias39.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ifrs11.htmhttp://www.iasplus.com/standard/ias31.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ias28_2011.htmhttp://www.iasplus.com/standard/ias28_2011.htmhttp://www.iasplus.com/standard/ias28.htmhttp://www.iasplus.com/standard/ias27_2011.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ifrs10.htmhttp://www.iasplus.com/standard/ias27.htm


8/19

Recap - New IFRS

IAS 27 (rev. 2011) effective 2013 Separate Financial Statements

IAS 28 (rev. 2011) effective 2013 Investments in Associates and JointVenture

IFRS 9 Financial Instruments effective 2015

IFRS 10 Consolidated Financial Statements effective 2013

IFRS 11 Joint Arrangements effective 2013

IFRS 12 Disclosure of Interests in Other Entities effective 2013

IFRS 13 Fair Value Measurement effective 2013

2010 Schweitzer-Mauduit International, Inc. Confidential 8
http://www.iasplus.com/standard/ias27_2011.htmhttp://www.iasplus.com/standard/ias28_2011.htmhttp://www.iasplus.com/standard/ifrs09.htmhttp://www.iasplus.com/standard/ifrs10.htmhttp://www.iasplus.com/standard/ifrs11.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ifrs13.htmhttp://www.iasplus.com/standard/ifrs13.htmhttp://www.iasplus.com/standard/ifrs13.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ifrs12.htmhttp://www.iasplus.com/standard/ifrs11.htmhttp://www.iasplus.com/standard/ifrs11.htmhttp://www.iasplus.com/standard/ifrs10.htmhttp://www.iasplus.com/standard/ifrs10.htmhttp://www.iasplus.com/standard/ifrs09.htmhttp://www.iasplus.com/standard/ias28_2011.htmhttp://www.iasplus.com/standard/ias27_2011.htmhttp://www.iasplus.com/standard/ias27_2011.htm


9/19

Which IFRS to use?


Control >50% 20% - 50%


10/19

Consolidated and separate financial statements


Do any controlrelationship exist?

Is parent exempt from preparingconsolidated financial statements?

Yes

Prepare separate

financial statementsonly

Are separate financial statements

also required?

No YesNo

Prepare both

consolidated and

separate financial

statements

Prepare consolidated financial

statements only

NoYes


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Control

Power toappoint/remov

e majority ofcontrolling

boardmembers

Power togovern

financial andoperation

Power overvoting

control atboard

meetings

>50% ofvotes by

ownership


Factors identifying control

Control ispresumed when

parent acquiresmore than halfof voting rights

of the entity


12/19

IFRS 9 Financial InstrumentsMain Features

will replace IAS 39 reduces the number of categories of financialassets

- Fair value

- Amortized cost

eliminated measurement category terminology- FVTPL, L&R, HTM, AFS

only one impairment method which is only iffinancial assets is measured at amortized cost



13/19

IFRS 10 Consolidated Financial Statements

replaces the control and consolidation section ofIAS 27 and SIC-12 set out a revised definition of control

- is exposed, or has rights , to variable returns

- has the ability to affect those returns through its power

- the rights to direct activities that significantly affectentitys returns

- returns have wide meaning and includes, for example,dividends, interests, valuation gains and losses,services fees, remuneration as well as synergies



14/19

IFRS 11 Joint Arrangements

supersedes IAS 31, Interest in Joint Ventures now two categories of joint arrangements

- joint operations (including jointly controlled assets)- joint ventures (based on substance of the

arrangements, not legal entity drivenoption of using proportionate consolidation iseliminated

- equity accounting used in accordance with IAS 28



15/19

IFRS 12 Disclosures of Interests in Other Entities

A reporting entity should disclose information that helps users of financialstatements to understand:

a. the significant judgments and assumptions (and changes) madeby the reporting entity in determining whether it controls (or doesnot control) another entity

b. the interest that the non-controlling interests have in the groupsactivities

c. the effect of restrictions on the reporting entitys ability to accessand use assets or settle liabilities of consolidated entities

d. the nature, and changes in , the risks associated with thereporting entitys interest in consolidated structured entities, joint

arrangements, associates and unconsolidated structured entities



16/19

IFRS 13 Fair Value Measurements

set out guidance on how not when to use fairvalue

clear definition of fair value

applies to financial and non-financial items

clarifies how to measure FV when the marketbecomes less active

improves transparency through disclosuresabout measurement uncertainty



17/19

Suggested IFRS resources

http://iasplus.comhttp://www.ifrs.org

http://iasplus.com/http://www.ifrs.org/http://www.ifrs.org/http://iasplus.com/http://iasplus.com/http://iasplus.com/http://iasplus.com/


18/19

Questions

18 2010 Schweitzer-Mauduit International, Inc.


19/19

Thank you


2011 ifrs updatesv3

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